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Economics Unit 2

Hey, I'm kind of nervous at the moment as I've suddenly realised that I may have really screwed up my paper... There was a question about government policy and how the Uk can deal with the recession. I only wrote about fiscal policy as I know that monetary policy is not in the governments hands. However I talked to a mate and he said he wrote a lot about monetary policy. HELP!
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.defy
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I had a similar question when I did ECON2 and I write about all three government instruments and concluding with supply side being more and if not equally important as fiscal policy.

Bare in mind there is no wrong answer, we was taught to make two important issues if we knew them really well to get an A. Youll be fine as long as you did so.

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Through the fiscal policy, the government can reduce the recessionary gap by charging a higher tax rate from the people so that it will reduce the amount spent by the government to produce goods to meet the demand. But in the monetary policy it will control the supply to reduce the inflationary gap. But too much control will also reduce the growth rate. Therefore I day that it is the fiscal policy to be applied.

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